contact@watkinslawfirm.com |  
(205) 701-5536
English

Our Blog

Year-End Planning is a MUST....it's also good to include your general counsel.

Nov 26 2017 Staff
The year-end is coming up and planning for 2018 should be underway at most companies. If you haven't started yet, or if you have, I think one quick story might be instructive about why it's a good idea to include your general counsel in the process.

STORY:


I was at a client’s office a while back and we were discussing their strategic plans and past performance. They were very excited about both their growth and profits.

I was concerned with the numbers because their profit percentage was so much higher than most other companies I know in the industry and/or, frankly, most industries.

After drilling down a bit, guess what we found?  The company had over $150k in expenses on the balance sheet as a loan, but not listed as expenses on the P&L? It took just a few minutes of inquiry by a lawyer to determine there was an issue. The main clue: the company had no cash, but significant profits.

How big of a deal was this? Well, the owners were planning to increase their bank lines of credit and grow at a greater rate next year by adding locations and possibly bringing on new investors. What a disaster that would have been...securities and bank fraud for starters and maybe even bankruptcy for dessert.

So, what did we do about it? First, we reviewed the company’s entire operating system along with the financial records to determine how this happened and to fix it. Thankfully the real issue turned out to be human error, not something more sinister. The chart of accounts was incorrectly established when the company opened.

You may be asking, why is the general counsel doing such a review? Because the legal consequences of the mistakes found are unquantifiable and we are the experts at effective, legal business operations and producing correct results.

The result is that we are fixing this and positioning the company for profitable growth.

Are you growing profitably? Is there a hole in your financial or human capital management that needs to be addressed? A quick review and operational audit by a business lawyer could help determine if a problem exists. 

Our firm has the expertise, skill and–the real key–unique experience of running companies as a C Level Executive that makes a difference when advising clients on: (i) structuring operations for efficiency and legal protection (which means more value); (ii) administration (not just overhead but value added elements); and (iii) sales/marketing (proper incentive based compensation causing the behavior that drives results!); plus many more of the literally infinite number of issues that occur while growing a business.
Rate this item
(1 Vote)
Blog Use: Disclaimer

**This blog site is published on behalf of and reflects the personal views of the article authors, in their individual capacity. It does not necessarily represent the views of the law firm or any clients, and is not sponsored or endorsed by them. The purpose of this blog site is to assist in dissemination of information about general business and interesting legal topics, but no representation is made about the accuracy of the information. The information contained in this blog site is provided only as general information for education purposes, and blog topics may or may not be updated subsequent to their initial posting.

**By using this blog site you understand that this information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice. This blog site should not be used as a substitute for competent legal advice from a licensed attorney in your state. This blog site is not intended to be advertising and Joshua M. Watkins does not wish to represent anyone desiring representation based upon viewing this blog site in a state where this blog site fails to comply with all laws and ethical rules of that state.

**No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.

 

In a world that has become increasingly complicated and uncertain, you deserve an attorney who is result-oriented, responsive and respected. 

 

 

Contact Info

4000 Eagle Point Corporate Dr. 
Birmingham, AL 35242

(205) 701-5536

 This email address is being protected from spambots. You need JavaScript enabled to view it.

Office Hours 9.00 am to 5.00 pm
By Appointment Only

Twitter Feed

As we head into the end of the year, it's that usual time to look back over the year and begin planning for 2018.... https://t.co/QJat0RVkos
"...the Franchise Rule [hopefully] gives prospective purchasers of franchises the material information they need... https://t.co/dMDK075HJg
Follow Joshua Watkins on Twitter